THE BANK OF RUSSIA IS AGAINST PREFERENTIAL MORTGAGES ON NEW BUILDINGS, BUT IT SUPPORTS TARGETED PROGRAMS

THE BANK OF RUSSIA IS AGAINST PREFERENTIAL MORTGAGES ON NEW BUILDINGS, BUT IT SUPPORTS TARGETED PROGRAMS

The head of the Central Bank of Russia, Elvira Nabiullina, made a statement on the completion of the preferential mortgage program with state support by the summer of 2024. This decision was made at a meeting of the Board of Directors of the Central Bank, where it was also decided to leave the key rate at 16%.

«Our position is that the broad non—targeted program should expire in the summer and not be resumed» - Elvira Nabiullina said, stressing that the regulator agrees with the extension of targeted mortgages, including «Family mortgages». Instead of a broad non-targeted mortgage program, the Central Bank proposes to focus on targeted support, including the Family Mortgage program. This decision was made due to the fact that targeted housing programs have proven to be more effective and in demand.

Elvira Nabiullina stressed that the regulator supports the extension of targeted mortgages, including the Family Mortgage program, as well as an additional payment of 450 thousand rubles. These programs have proved to be the most in demand and have shown their effectiveness.

However, the regulator advocates the completion of a broad non-targeted preferential mortgage program by the summer of 2024. This is due to the fact that the program has expired and does not require an extension.

The government is currently preparing relevant documents to extend targeted housing programs, including a Family mortgage and an additional payment. This will continue to support families in purchasing housing and ensure stability in the real estate market.

Thus, the decision to complete a broad non-targeted preferential mortgage program by the summer of 2024 is a logical step in the development of the housing market. Targeted support, including a «Family Mortgage», will allow for more efficient allocation of resources and ensure affordable housing for the population.

We expect these measures to help maintain stability in the real estate market and provide an opportunity for many families to purchase their own homes.